Strong earnings from non-brokerage businesses helped the first two mainland-listed securities firms which have disclosed their financial results for 2012 overcome the volatility seen last year at the A-share markets, according to the unaudited earnings reports they released Thursday.
Hongyuan Securities announced that it realized 1.19 billion yuan ($191.2 million) in profits last year, up 35.04 percent year-on-year, while its revenue reached 3.29 billion yuan, an increase of 39.99 percent over the end of 2011. Meanwhile, GF Securities saw its profits climb to 2.68 billion yuan and its revenue increase to 6.97 billion yuan, up 5.02 percent and 17.25 percent year-on-year respectively.
Both Hongyuan Securities and GF Securities attributed the growth in their profits to the development of their non-trading operations. According to Hongyuan Securities, its asset management, underwriting and sponsoring businesses were major forces behind its rising profits. GF Securities said that revenue from its expanded investment banking services as well as its margin trading and securities lending businesses shored up its sagging brokerage income.
Last year, Chinese regulators launched policies giving securities firms more freedom to widen their business scope in a bid to help them weather the headwinds battering the mainland equity market.
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